Non banking finance company
Querist :
Anonymous
(Querist) 05 January 2012
This query is : Resolved
Car loan was availed in April2008, from Mahindra financial services(MFS).The borrower did not even get the sanction letter containing the loan details.As borrower`s signature were obtained on various blank documents by MFS,the borrower demanded for the copies of those documents. after lots of follow ups to MFS for the copies of Loan documents & copy of Loan agreement, finally when after two years from the date of sanction of the loan the borrower got the copy of the loan agreement in may 2010, the borrower observed many doubtful things such as; the power of attorney was not notarised,rate of interest was not mentioned anywhere,many blank spaces still left in the agreement, different tenure (60months instead of 48 months as promised at the time of processing), no breakup of the initial down payment made to MFS, the unknown guarantor was added; even though no guarantor was provided ever by the borrower at the time of processing the loan. After getting the copies of the loan agreement , the borrower came to know about such misdeeds by MFS & As MFS did not furnish the details & the copies of the loan relevent document earlier, the borrower after giving the 3 notices to MFS, stopped the EMI on the said loan since June 2010. MFS called the borrower for arbitration proceedings where after observing such misdeeds by MFS; MFS was told to settle the matter amicably by arbitrator. Since then nothing has happened. Is it mandatory for the Non banking finance companies like MFS to furnish the details of loan and the copies of the loan documents to the borrower?What is the time limit for that?what action can be taken against MFS in this matter? Where to complain against MFS in his mater?
Raj Kumar Makkad
(Expert) 05 January 2012
Every NBFC has to follow RBI guidelines according to which they have not only to provide account statement to the borrower on demand but have also to provide all the details of the documents obtained and they cannot play any foul game with the borrower.
Borrower can make complaint to the concerned branch of RBI if he find any irregularity or violation or misrepresentation as is seen in the given case.
Devajyoti Barman
(Expert) 05 January 2012
If there no ' consensus ad idem', there is no contract either.
In other words the difference in proposal and acceptance does not give rise any contractual obligations.
So if you could prove that the loan agreement was something which you did not agree then damage could be awarded to you by the Consumer Forum.
Arbitration clause does not bar filing complaint in the Consumer Forum.
ajay sethi
(Expert) 05 January 2012
you have stated that your signature was obtained on blank papers . details have been filled in later by financial services . have you in any correspondence with Mahindra financial services raised this grievance .?
why were you silent for 2years? the fact of case is you have obtained loan and used the car for 2 years . ?
why did you not refuse to sign the blank documents . you could have insisted on xerox copies of all documents signed by you . it is in your interest to arrive ay an amicable settlement with finance company . if what you have stated is true complain to regulatory authorities against the company
Deepak Nair
(Expert) 06 January 2012
Sifficiently advised by all the experts.
